Business Line of Credit: How It Works and When You Need One
A business line of credit is one of the most flexible financing tools available. Learn how it works, when to use it, and how to qualify for up to $1M.
Start an applicationHow a Business Line of Credit Works. A line of credit gives you access to a pre-approved pool of capital. You draw funds when you need them and only pay interest on the amount you use. As you repay, your available balance replenishes — creating a revolving source of working capital.
Line of Credit vs. Term Loan: Key Differences. A term loan gives you a lump sum with fixed payments. A line of credit gives you flexible access you can use and reuse. Term loans are better for one-time purchases; lines of credit are better for ongoing working capital needs.
When to Use a Business Line of Credit. Bridging seasonal revenue gaps, covering payroll during slow periods, purchasing inventory ahead of demand, managing unexpected expenses, and taking advantage of early-payment discounts from suppliers.
Qualify for Up to $1M with Voxen. Voxen Capital offers business lines of credit up to $1M with same-day approval. Requirements: 6+ months in business, $15,000+ monthly revenue, and a credit score of 500 or above. No prepayment penalties.